Stories
Gold, Silver Prices to Track Crude Oil; Buying on Dips Expected at $85-90/bbl
- •Chirag Thakkar of Amrapali Gujarat predicts gold and silver prices will follow crude oil, with buying opportunities emerging if crude drops to $85-90 per barrel.
- •He expects both precious metals to move in tandem for the next six months, with any price dip presenting a buying opportunity.
- •Thakkar suggests the US Federal Reserve's rate decision is already factored in, making crude oil the primary price driver for gold and silver.
- •There are unconfirmed rumors of a potential rationalization of import duties on gold and silver in India, possibly linked to crude prices and the country's dollar reserves.
- •Despite month-on-month growth in jewelry buying, Thakkar anticipates this quarter's festival demand for gold and silver to fall short of last year's levels.
Key Questions Answered
Gold and silver prices are expected to remain closely linked to crude oil in the short term, with crude acting as their main market driver. While a drop to $85-90 per barrel could encourage buying on dips, sustained high oil prices can fuel inflation concerns and higher interest rates that put pressure on non-yielding assets.
Buying of gold and silver jewellery has grown month on month, with the most auspicious retail buying period beginning after Shradh. However, demand this quarter is expected to fall short of last year's level.
Digital gold and silver platforms are growing at about 15% month on month. Investors who wish to avoid physical metal at exit are shifting to ETFs, while those seeking physical coins, bars, or jewellery are using these platforms for easier small-amount purchases.
